Shipbreaking scrap prices rose on Tuesday amid higher demand from local mills, supply of scrap remained tight as the arrival of vessels remained limited.
The daily Davis Index for HMS attachments and Melting rose by Rs500/mt ($6.84/mt) each to Rs37,200/mt and Rs36,200/mt ex-Alang, respectively.
Re-rolling scrap prices also rose as steelmakers continued to stock raw material inventories. The daily Davis Index for 4Ani rose by Rs700/mt to Rs39,000/mt ex-Alang and the index for 8Ani rose by Rs300/mt to Rs42,500/mt ex-Alang.
Demand from the construction sector has improved which has led to a healthy demand for TMT. Yard owners increased their offers for ship plates and the index for 1kg plates rose by Rs700/mt to Rs37,600/mt ex-Alang and the index for 5kg plates rose by Rs200/mt to Rs41,700/mt ex-Alang.
Overall scrap supply in the domestic market remained limited as a result, prices could remain firm.
($1=Rs72.9)